Your snippet uses a BufferedReader, chained to an InputStreamReader, to read aline from the standard input console and store it to the String line .
BufferedReader
Read text from a character-input stream, buffering characters so as to provide for the efficient reading of characters, arrays, and lines.
The buffer size may be specified, or the default size may be used. The default is large enough for most purposes.
In general, each read request made of a Reader causes a corresponding read request to be made of the underlying character or byte stream. It is therefore advisable to wrap a BufferedReader around any Reader whose read() operations may be costly, such as FileReaders and InputStreamReaders.
BufferedReader#readLine()
Read a line of text. A line is considered to be terminated by any one of a line feed ('\n'), a carriage return ('\r'), or a carriage return followed immediately by a linefeed.
InputStreamReader
An InputStreamReader is a bridge from byte streams to character streams: It reads bytes and decodes them into characters using a specified charset. The charset that it uses may be specified by name or may be given explicitly, or the platform's default charset may be accepted.
Each invocation of one of an InputStreamReader's read() methods may cause one or more bytes to be read from the underlying byte-input stream. To enable the efficient conversion of bytes to characters, more bytes may be read ahead from the underlying stream than are necessary to satisfy the current read operation.
System
The System class contains several useful class fields and methods. It cannot be instantiated.
Among the facilities provided by the System class are standard input, standard output, and error output streams; access to externally defined "properties"; a means of loading files and libraries; and a utility method for quickly copying a portion of an array.
System.in
The "standard" input stream. This stream is already open and ready to supply input data. Typically this stream corresponds to keyboard input or another input source specified by the host environment or user.